The Best and Cheapest Home Insurance Companies in Illinois in 2026
Find Cheap Home Insurance Quotes in Illinois
Who has the best homeowners insurance in Illinois?
Who has the cheapest home insurance in Illinois?
Allstate has the cheapest home insurance in Illinois across a wide range of coverage levels.
Find Cheap Home Insurance Quotes in Illinois
- Allstate usually has the cheapest rates no matter where you live in Illinois. Average rates can vary by almost $1,200 per year depending on where you live in the state.
- Erie is the best option if you have a new home. Its average rate for a newly built home is $718 per year. Plus, Erie has excellent customer service.
- Chubb is a good choice if you have an expensive or luxury home because it has coverage options specifically for expensive houses.
Cheapest home insurance in Illinois by dwelling coverage amount
$200,000
$350,000
$500,000
$1 million
Key takeaways
- Home insurance rates in Illinois have gone up by about 65% in the last five years. That's the seventh-largest rate increase in the country between 2021 and 2026.
- Farmers and Nationwide raised their rates the most, while Chubb and Country Financial had the lowest jumps in prices.
- One thing that could be causing the higher rates is Illinois' increasing risk of tornadoes. The state saw 147 tornadoes in 2025, according to the National Weather Service's Storm Prediction Center. That's up from 139 in 2024 and 118 in 2023.
Best and cheapest home insurance for most people in Illinois: Allstate
Pros & cons
- Cheap rates
- Good coverage and discounts
- Local agents available
- Claims process isn't the best
- More complaints than average
Why is Allstate the best?
Allstate's mix of cheap rates and good coverage makes it the best home insurance in Illinois for most people.
How much does Allstate home insurance cost in Illinois?
Allstate has good coverage too, with helpful extra options like coverage for your musical instruments, sports equipment and business items. And you can save with discounts for having a fire extinguisher and smoke alarms, buying a new home or being a first-time homebuyer, and getting a quote before you need your policy to start.
Potential issues
Allstate's customer service isn't always the best.
According to J.D. Power, Allstate's claims service is below average. This could mean it takes longer to get your house fixed after it's damaged. Customers might also have issues with getting in touch with company representatives and getting questions answered.
Additionally, Allstate gets about 6% more complaints than average, according to the National Association of Insurance Commissioners (NAIC). Choosing a company with poor customer service can lead to frustrations later on when you need to make changes to your policy or ask questions.
Best Illinois home insurance for bundling: State Farm
Pros & cons
- Cheap rates
- Good bundling discount
- Local agents across the state
- Customer service is trending down
- Fewer discounts than some companies
Why is State Farm the best?
State Farm is a great option for bundling home and car insurance in Illinois because of its cheap rates and good discount.
In Illinois, a home insurance policy with $350,000 in dwelling coverage costs $1,636 per year with State Farm. That's 40% cheaper than the state average. And full coverage car insurance with State Farm is $181 per month in Illinois. On top of those cheap rates, customers save an average of 27% on their home insurance and 18% on their car insurance by bundling the policies with State Farm.
State Farm's policies also have a good amount of coverage options to help you customize your policy. Plus, there are local agents across the state to help guide you.
Potential issues
State Farm's customer service has been trending down over the last several years.
State Farm got 23% more complaints about its home insurance policies than expected for a company its size in 2025, according to the National Association of Insurance Commissioners (NAIC).
You also can't get as many discounts with State Farm as you can with other companies.
Compare bundling discounts
You could save an average of 27% off your home insurance rate with State Farm if you bundle it with your car insurance.
Allstate has a slightly higher home insurance bundling discount compared to State Farm, and a cheaper monthly rate. But because Allstate's car insurance rates in Illinois are higher, you'll usually pay less overall with State Farm.
Best home insurance customer service in Illinois: Erie
Pros & cons
- Excellent service
- Above-average claims process
- Local agents available
- Expensive rates
- Can't completely buy a policy online
Why is Erie the best?
Erie's customers tend to be very happy with the company's customer service and claims process.
Erie gets very few complaints about its home insurance, according to the National Association of Insurance Commissioners (NAIC). And J.D. Power ranks Erie highly for overall customer satisfaction. J.D. Power also gives Erie an above-average rating for its claims process, which means customers are usually happy with the way Erie handled the process of getting their house fixed after it was damaged.
If you prefer working with an agent in person, Erie is also a good option. The company has agents throughout Illinois that can help you choose the best coverage options for your needs.
Potential issues
Erie isn't a good choice if you want to buy a policy online. Although you can get a quote online, you have to contact an agent to finalize the purchase and start your policy.
And if price is your main concern, Erie isn't the best option. Its rates are high, and you can usually get a cheaper policy with several companies, including Allstate and State Farm.
Compare customer satisfaction
Erie and USAA have the best customer service in Illinois. But only people affiliated with the military can get USAA, whereas everyone can get coverage from Erie.
Best home insurance coverage in Illinois: American Family
Pros & cons
- Wide selection of coverage options
- Numerous discounts
- Good customer service
- Very expensive rates
- Claims service is slightly below average
Why is American Family the best?
Homeowners in Illinois can benefit from American Family's impressive coverage options.
AmFam's policies are more customizable than most companies' policies. You can add coverage such as:
- Equipment breakdown
- Home renovation coverage
- Short-term rental coverage
- Credit monitoring coverage
- Flash flood coverage
And if you don't live in Illinois year-round, you can even insure your house as a second home.
And American Family offers a long list of discounts, too, including savings for newer homes, renovated homes and smart home systems.
Potential issues
American Family's rates are expensive. In Illinois, a house with $350,000 in dwelling coverage costs $4,412 per year to insure with American Family. That's 62% more than the state average. The company's numerous discounts might help you get a cheaper rate. But even with discounts, AmFam is likely to be pricey.
American Family may not have the best claims process, either. J.D. Power ranked AmFam slightly below average for claims satisfaction.
Compare coverage
American Family offers at least 18 optional coverages to help you build a policy that works for your needs.
Who has the best and cheapest home insurance in Chicago?
Allstate is the best and cheapest home insurance company in Chicago.
An Allstate policy in Chicago costs $1,074 per year, on average, which is 66% cheaper than the city average of $3,128.
But if you want the best coverage options, consider American Family. The company's extensive list of optional coverages lets you build a policy to your specific needs.
What are the top-rated insurance companies in Illinois?
USAA is the highest-rated home insurance company in Illinois.
USAA has excellent customer satisfaction, according to J.D. Power, and very few complaints, according to the National Association of Insurance Commissioners (NAIC). The company also has good coverage.
But remember that USAA is only available to military members, veterans and certain family members. If you can't get USAA, Allstate or State Farm is a great option.
What's the average home insurance cost in Illinois?
Illinois home insurance costs an average of $2,731 per year for a policy with $350,000 in dwelling coverage.
That's about 14% more than the national average cost for home insurance, which is $2,395 per year for $350,000 in dwelling coverage.
Average cost of home insurance in Illinois by dwelling amount
It costs more to insure a home in Illinois than it does in nearby Indiana or Wisconsin, where average rates are $2,639 and $1,679 per year, respectively.
Illinois might be more expensive since it tends to be more likely to be hit by high winds and tornadoes than some of the surrounding states. According to the National Weather Service's Storm Prediction Center, Illinois had 147 tornadoes in 2025. Indiana only had 67 tornadoes in 2025, and Wisconsin only had 38.
But in Iowa, the same coverage costs an average of $3,136 per year.
Illinois homeowners insurance rates by city
Homeowners in Chicago pay an average of $3,128 per year for home insurance.
But rates depend on where you live near Chicago. In Chicago Heights, the average rate for home insurance is $2,717 per year. And in Schaumburg, the average price for coverage is $2,433 per year.
Western Springs, a suburb to the southwest of Chicago, has the cheapest home insurance in Illinois, with an average cost of $2,324 per year. Cypress, in the southern tip of the state, has the most expensive average rate, with a policy at $3,492 per year. Overall, rates in southern Illinois tend to be the highest.
Find Cheap Home Insurance Quotes in Illinois
Average annual home insurance rates by IL city
What type of home insurance do I need in Illinois?
Homes in Illinois have to withstand heavy winds, rain, hail, cold temperatures and flooding, depending on where they are in the state. Home insurance covers a lot of types of damage, but it doesn't cover everything. It's a good idea to know what things are most likely to damage your home, and to review your coverage with your agent or company.
Does Illinois home insurance cover floods?
Homeowners insurance doesn't cover flood damage. You have to buy a separate flood insurance policy to have coverage for flooding.
According to the Federal Emergency Management Agency (FEMA), flooding can and does happen anywhere in Illinois. If you own a house, check what flood zone you're in using the flood map tool from FEMA.
Does Illinois home insurance cover tornadoes?
Home insurance usually covers damage from tornadoes. That includes wind, hail and water damage.
According to the National Weather Service's Storm Prediction Center, there were 147 tornadoes recorded in Illinois in 2025. That's the second-highest number of tornadoes in the country, after Texas.
Most home insurance policies automatically cover wind damage, but you should talk to your company to be sure. You might have a separate deductible for wind or hail damage, and it's a good idea to know how much you'll have to pay if you file a claim.
Does Illinois home insurance cover "mine subsidence"?
Home insurance might cover what's called mine subsidence, but only if you have an optional add-on coverage.
Mine subsidence happens when the ground above an underground mine shifts or collapses, causing damage to the land, homes and buildings above it.
According to the Illinois State Geological Survey, more than 330,000 homes in Illinois are built above mines and could be at risk for damage. Home insurance doesn't automatically cover mine subsidence. But insurance companies are often required to offer you the coverage, and you can always ask your company or agent to add it to your policy.
How to save on Illinois home insurance
Shopping around and comparing home insurance quotes is the best way to get cheap home insurance in Illinois.
But you can save in other ways, too. Taking advantage of discounts might save you hundreds of dollars each year.
Illinois’ surging home insurance costs
Home insurance prices have jumped by over 65% in Illinois over the last five years.
Only six other states had prices rise faster than Illinois. And unlike many other states, the rate increase didn't drop off in 2025.
Home insurance rate increases in Illinois, 2021-2025
Farmers has had the biggest increase over the last five years, raising rates by nearly 93%. Nationwide is a close second; its rates are 92% higher compared to five years ago.
Chubb's rates have gone up the least, but they're still about 33% higher than they were in 2021.
Frequently asked questions
How much is house insurance per month in Illinois?
Home insurance costs $2,731 per year in Illinois, on average, for a policy with $350,000 in dwelling coverage. But several home insurance companies have cheaper rates, including Allstate, State Farm and Farmers.
What is the cheapest home and auto insurance in Illinois?
Allstate has the cheapest home insurance in Illinois, but its car insurance rates tend to be high. If you want to bundle your auto and home insurance, State Farm is usually a better option. It has cheap home insurance rates, good car insurance rates and a great bundling discount.
Is homeowners insurance required in Illinois?
Home insurance isn't required by law in Illinois or any other state. But if you have a mortgage on your home, your mortgage company will require you to have home insurance. Even if your home is paid off, getting a policy is a good idea. Home damage can be expensive, and home insurance helps protect your finances from unexpected repair bills.
Methodology
To find the best and cheapest home insurance in Illinois, ValuePenguin's experts got home insurance quotes from every residential ZIP code in Illinois, from 10 of the top companies in the state. The quotes are for a 45-year-old married man with no claims as a homeowner. The quotes are for a 1,700 square foot home built 50 years ago, which is representative of the average home in Illinois. New home data is for a home built in 2025.
Our experts used the following coverage limits to get average rates for a variety of home values:
- Dwelling coverage: $200,000, $350,000, $500,000 or $1 million
- Personal liability: $100,000
- Medical payments: $1,000
- Deductible: $1,000
ValuePenguin used Quadrant Information Services to get the quotes. Quadrant gets rates from publicly available insurance company filings. Keep in mind that prices vary based on a number of underlying factors. Your quotes will likely be different.
ValuePenguin's ratings of Illinois home insurance companies use average rates, coverage options, discounts, customer complaint numbers from the National Association of Insurance Commissioners (NAIC) and scores from J.D. Power's home insurance customer satisfaction survey.
Sources:
About the Author
Senior Writer
Cate Deventer is a Senior Writer who specializes in health insurance, Medicare, auto and home insurance. She's been a licensed insurance agent since 2011.
She started her insurance career working as a customer service agent for State Farm. She later moved to an independent agency, where she worked with several insurance companies and hundreds of clients. She quoted policies, filed claims and answered insurance questions. In 2021, she pivoted her career and began writing about insurance for Bankrate. She moved to ValuePenguin in 2023 and began writing about health insurance and Medicare.
Cate has a passion for helping readers choose insurance to fit their needs. She enjoys knowing that her research and knowledge help people choose insurance products that make a positive difference in their lives.
How insurance helped Cate
Cate used her health insurance knowledge to navigate a surgery in 2023. Understanding how her policy worked let her focus on recovery instead of worrying about bills.
Expertise
- Health insurance
- Medicare & Medicaid
- Auto insurance
- Home insurance
- Life insurance
Credentials
- Licensed Life, Accident & Health Insurance Agent
- Licensed Property & Casualty Insurance Agent
Referenced by
- CBS
- NBC
- Wall Street Journal
Education
- BA, Theatre, Purdue University
- BA, English, Indiana University
Editorial Note: The content of this article is based on the author's opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.
